AVTOVAZ sums up the results and elects new Board of Directors

    Annual general meeting of shareholders of AVTOVAZ was held on June 26, 2014. On this meeting new members of the Board of Directors have been elected. Carlos GHOSN, President of the Alliance Renault-Nissan, has been elected as the Chairman of the new AVTOVAZ Board of Directors. Sergey CHEMEZOV, head of the State Corporation Rostec, was appointed his deputy. It was decided not to pay dividends on preferred and common stocks of the JSC. Shareholders of AVTOVAZ approved annual report of AVTOVAZ for the year 2013, annual financial (accounting) statements and considered a number of other issues.

    Within the scope of the shareholders meeting, results for the year have been presented as well as strategic plans for the medium term have been announced. Three main achievements in 2014 were the following: development of a brand new model – LADA Vesta, market launch of another modification of the Russian bestseller in the B-segment - LADA Granta liftback, upcoming expansion of the niche product by launching of LADA Kalina Cross, LADA Largus Cross, LADA 4x4 Urban and LADA Kalina Sport vehicles lineup.

    Response to stagnating car market was transition to the monthly planning of production and sales that allowed avoiding overproduction and overstock. At the same time, work on improvement the dealer network, both in Russia and abroad, has proceeded well.

    In the area of sales promotion and cost optimization, work on preparation for introduction of the new principle of working with the customers based on ''pre-order'' (from July 1, 2014) has been started. This practice is used by the world`s leading corporations and allows to satisfy customer demands, reducing investments in the production of unpopular vehicles versions.

    Carlos GHOSN, Chairman of the Board of Directors of JSC AVTOVAZ: ''We believe that JSC AVTOVAZ will maintain and strengthen its leading positions in the Russian automobile industry. We will continue to implement our strategy for sustainable profitable operation and positive cash flow, which play a vital role in the long-term prosperity of the company''.

    Sergey CHEMEZOV, Deputy Chairman of the Board of Directors of JSC AVTOVAZ: ''Due to the critical market situation the past year was the difficult for the company. However, much has been achieved. Export of LADA vehicles is increased, we have done a lot of preparatory work, thanks to which this autumn three new company products will be submitted at once. In 2013, there was a replacement of top management who has been efficiently working for five years showing the enterprise the way out of crisis and thus laying the foundation for its further development. In accordance with the Strategy of AVTOVAZ, it is necessary to solve tasks for European quality standards achievement in terms of LADA vehicles lineup, new Renault-Nissan Alliance models launch is done”.

    Bo Andersson, President of JSC AVTOVAZ: ''Our goal is to become the best automaker in Russia and strengthen its leadership position in the segment of affordable and high quality vehicles. We have all prerequisites for that. We employ excellent people, true professionals. We have a plan to increase the market share up to 20% and improve the profitability. We continue to assemble the vehicles for Renault-Nissan Alliance. And, at the same time, we strengthen the brand LADA by creating new and improving existing models and their quality, up to the end of this year we shall introduce to the market three new LADA models''.